Mortgage rates continue to fall

By Huntley Mitchell

17 May 2016

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Three banks and one mortgage funder have announced changes to their home loan rates, showing that the Reserve Bank’s cash rate cut is still taking effect.

Greater Bank’s five-year fixed rate for its Ultimate Home Loan product has been cut by 25 basis points to 3.99 per cent (with a 4.48 per cent comparison rate) for owner-occupiers with loans worth more than $150,000 and a maximum LVR of 85 per cent.

The bank’s four-year fixed rate has also dropped by 25 basis points to 3.99 per cent (with a 4.49 per cent comparison rate), while its three-year fixed rate has been reduced by 10 basis points to 3.99 per cent (with a 4.51 per cent comparison rate).

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Meanwhile, MyState Bank has cut its variable rates for owner-occupiers and investors by 23 basis points for new loans, effective 30 May.

Furthermore, the bank’s new variable rate loans for owner-occupiers and investors with LVRs of less than 80 per cent will be reduced by 23 basis points, effective tomorrow.

As a result of these changes, MyState’s Special Residential Home Loan for new owner-occupier customers with LVRs of less than 80 per cent will fall to 3.99 per cent for loans over $100,000.

ME’s three-year fixed rate for owner-occupiers has been cut by seven basis points to 3.97 per cent (with a 4.41 per cent comparison rate).

Furthermore, the bank’s Member Package variable rate has been reduced by eight basis points for owner-occupiers to 4.01 per cent (with a 4.42 per cent comparison rate), and by five basis points to 4.24 per cent (with a 4.62 per cent comparison rate. Customers with a maximum LVR of 80 per cent are eligible for these rates.

Adding to the list, mortgage funder Advantedge Financial Services has reduced its one, two and three-year fixed rates by 25 basis points, and its five-year fixed rate by 10 basis points.